Copy to clipboard 
DJO reported 3Q20 orthopedic revenue of USD $130.8 million, +6.4% vs. 3Q19. Colfax leadership sees the market as 90% to 95% recovery and expects healthy growth rates over 2019 levels to return in 2021. DJO’s joint replacement business grew in the high single digits, indicating that it is taking share in a quarter when some larger competitors performed unevenly in that market.
In the early fourth quarter, DJO completed its acquisition of the STAR ankle system as well as certain finger joint implants from Stryker. Colfax leadership estimates that the foot and ankle reconstruction market is over $1 billion, and is excited about the market’s high growth rate, strong gross margins and importance to surgeons. The company also said the high fragmentation of the foot and ankle space presents multiple paths for acquisition-based expansion.
“When we were doing the planning for the acquisition of DJO, we looked at whether there were attractive adjacencies. Foot and ankle was one that had attractive growth, good structure and good possibilities. It was a nice surprise to have the Stryker transaction create this opportunity this early in our ownership of DJO to step into that adjacency at an attractive price.” – Matt Trerotola, Colfax President and CEO
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $94.0 | $86.0 | $8.0 | 9.3% |
| Knees | $23.5 | $22.1 | $1.4 | 6.3% |
| Hips | $21.6 | $19.0 | $2.6 | 13.9% |
| Extremities | $48.9 | $44.9 | $4.0 | 8.8% |
| Other (Recovery Sciences) | $36.8 | $37.0 | ($0.1) | (0.4%) |
| Total | $130.8 | $122.9 | $7.9 | 6.4% |
| 9mo20 | 9mo19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $244.3 | $266.8 | ($22.5) | (8.5%) |
| Knees | $61.3 | $69.4 | ($8.1) | (11.6%) |
| Hips | $56.0 | $59.1 | ($3.1) | (5.2%) |
| Extremities | $126.9 | $138.3 | ($11.4) | (8.2%) |
| Other (Recovery Sciences) | $95.1 | $108.8 | ($13.7) | (12.6%) |
| Total | $339.4 | $375.6 | ($36.3) | (9.7%) |
Geographic Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $97.2 | $90.7 | $6.4 | 7.1% |
| OUS | $33.6 | $32.2 | $1.4 | 4.3% |
| EMEA | $24.5 | $24.0 | $0.5 | 2% |
| Asia Pacific | $6.5 | $4.8 | $1.8 | 37.4% |
| Rest of World | $2.6 | $3.5 | ($0.9) | (25.4%) |
| Total | $130.8 | $123.0 | $7.8 | 6.4% |
| 9mo20 | 9mo19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $252.6 | $276.2 | ($23.7) | (8.6%) |
| OUS | $86.8 | $99.5 | ($12.7) | (12.7%) |
| EMEA | $64.2 | $74.2 | ($10.0) | (13.5%) |
| Asia Pacific | $15.3 | $14.5 | $0.8 | 5.2% |
| Rest of World | $7.3 | $10.7 | ($3.4) | (31.5%) |
| Total | $339.4 | $375.7 | ($36.3) | (9.7%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $805.9 | |
| Cost of Sales | $461.8 | 57.3% |
| Selling and Admin | $278.1 | 34.5% |
| Other | $52.7 | 6.5% |
| Net Earnings | $13.4 | 1.7% |
| $0.0 | 0% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
DJO reported 3Q20 orthopedic revenue of USD $130.8 million, +6.4% vs. 3Q19. Colfax leadership sees the market as 90% to 95% recovery and expects healthy growth rates over 2019 levels to return in 2021. DJO’s joint replacement business grew in the high single digits, indicating that it is taking share in a quarter when some larger competitors...
DJO reported 3Q20 orthopedic revenue of USD $130.8 million, +6.4% vs. 3Q19. Colfax leadership sees the market as 90% to 95% recovery and expects healthy growth rates over 2019 levels to return in 2021. DJO’s joint replacement business grew in the high single digits, indicating that it is taking share in a quarter when some larger competitors performed unevenly in that market.
In the early fourth quarter, DJO completed its acquisition of the STAR ankle system as well as certain finger joint implants from Stryker. Colfax leadership estimates that the foot and ankle reconstruction market is over $1 billion, and is excited about the market’s high growth rate, strong gross margins and importance to surgeons. The company also said the high fragmentation of the foot and ankle space presents multiple paths for acquisition-based expansion.
“When we were doing the planning for the acquisition of DJO, we looked at whether there were attractive adjacencies. Foot and ankle was one that had attractive growth, good structure and good possibilities. It was a nice surprise to have the Stryker transaction create this opportunity this early in our ownership of DJO to step into that adjacency at an attractive price.” – Matt Trerotola, Colfax President and CEO
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $94.0 | $86.0 | $8.0 | 9.3% |
| Knees | $23.5 | $22.1 | $1.4 | 6.3% |
| Hips | $21.6 | $19.0 | $2.6 | 13.9% |
| Extremities | $48.9 | $44.9 | $4.0 | 8.8% |
| Other (Recovery Sciences) | $36.8 | $37.0 | ($0.1) | (0.4%) |
| Total | $130.8 | $122.9 | $7.9 | 6.4% |
| 9mo20 | 9mo19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $244.3 | $266.8 | ($22.5) | (8.5%) |
| Knees | $61.3 | $69.4 | ($8.1) | (11.6%) |
| Hips | $56.0 | $59.1 | ($3.1) | (5.2%) |
| Extremities | $126.9 | $138.3 | ($11.4) | (8.2%) |
| Other (Recovery Sciences) | $95.1 | $108.8 | ($13.7) | (12.6%) |
| Total | $339.4 | $375.6 | ($36.3) | (9.7%) |
Geographic Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $97.2 | $90.7 | $6.4 | 7.1% |
| OUS | $33.6 | $32.2 | $1.4 | 4.3% |
| EMEA | $24.5 | $24.0 | $0.5 | 2% |
| Asia Pacific | $6.5 | $4.8 | $1.8 | 37.4% |
| Rest of World | $2.6 | $3.5 | ($0.9) | (25.4%) |
| Total | $130.8 | $123.0 | $7.8 | 6.4% |
| 9mo20 | 9mo19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $252.6 | $276.2 | ($23.7) | (8.6%) |
| OUS | $86.8 | $99.5 | ($12.7) | (12.7%) |
| EMEA | $64.2 | $74.2 | ($10.0) | (13.5%) |
| Asia Pacific | $15.3 | $14.5 | $0.8 | 5.2% |
| Rest of World | $7.3 | $10.7 | ($3.4) | (31.5%) |
| Total | $339.4 | $375.7 | ($36.3) | (9.7%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $805.9 | |
| Cost of Sales | $461.8 | 57.3% |
| Selling and Admin | $278.1 | 34.5% |
| Other | $52.7 | 6.5% |
| Net Earnings | $13.4 | 1.7% |
| $0.0 | 0% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
You are out of free articles for this month
Subscribe as a Guest for $0 and unlock a total of 5 articles per month.
You are out of five articles for this month
Subscribe as an Executive Member for access to unlimited articles, THE ORTHOPAEDIC INDUSTRY ANNUAL REPORT and more.
ME
Mike Evers is a Senior Market Analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
